The Center has raised additional excise duty, road and infrastructure cess on petrol and diesel tonight in the sharpest increase in recent times, making petrol hiked by Rs. 10 a liter and diesel by Rs. 13 per litre.
The new rates will apply Wednesday beginning at 6 am. After the lockdown began on March 21, petrol prices in the country remained unchanged at Rs. 69.59 per litre, and diesel remained at Rs. 62.29 per litre.
The move comes as the government begins steps to raise revenue for post-COVID economic reconstruction. However, officials from the Ministry of Finance said the increase in excise duty, which comes into effect would not result in hike in retail petrol and diesel prices for consumers.
Rs. 2 per litre has been hiked by the special additional excise duty on petrol, while the duty levied on diesel has increased by Rs. 5 a litre.
A government notification issued late Tuesday night said that the road and infrastructure cess on both the transport fuels were raised by Rs. 8 each.
Earlier in the day, the Delhi government raised the VAT on diesel nearly doubled from 16.75 per cent to 30%. The petrol now costs Rs. 71.26 per litre, while diesel costs Rs. 69.39 per litre after the hike.
Also the Government of Tamil Nadu has increased VAT on oil prices. In the southern state, petrol have risen by Rs. 3.25 per litre, while diesel prices have risen by Rs. 2.50 per litre.
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Source: Deccan Herald